Nigeria airlines decry high operating cost

Airline Operators Association of Nigeria has called
on the Federal Government to review the charges
paid by its members in order to reduce their high
cost of operation.
General Secretary of the association, Mr
Mohammed Joji, told the News Agency of Nigeria
in Abuja that high operating cost was a challenge
facing the aviation industry in Nigeria.
Joji stated that airline operators in the country
were burdened with multiple charges, which
included five per cent ticket sale charge, landing
and parking charge as well as passenger service
charge and en-route navigational charge.
According to him, aside the charges mentioned,
airlines are also subjected to paying Value Added
Tax to the Federal Inland Revenue Service, which
he described as abnormal.
He added, “The issue of multiple charges is a
major challenge facing local airline operators,
because the charges are so numerous and have
significantly affected airlines’ operations.
“For instance, we pay five per cent charge for
passenger’s ticket, which is a compulsory
payment for every operator.
“For the operators to survive in the business, there
is the need for the government to harmonise some
of these charges in the overall interest of the
sector.
“The charges are not good for the industry as a
whole, and we urge the government to find ways of
addressing this issue which has become a major
challenge to us.”
Joji identified another challenge of the industry as
the high cost of aviation fuel (JET-A1), which is
currently being sold at between N160 and N170
per litre.
He added that the aviation fuel, whose price was
usually cheaper than the prices of petrol and
diesel, was hitherto sold at N40 per litre.
According to him, the marketers have taken
advantage of the deregulation of the downstream
sector to reap additional proceeds, describing this
as illegal and immoral.
-NAN

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